The business world more than ever is demanding a higher level of transparency in its statements and reports to the investing public, their executive management and board members and to the asset management industry. In part, this is due to the debacles caused by corporate scandals of major enterprises such as Enron, Worldcom, Parmalat and others in which investors and pension funds participants lost billions of dollars. Legislation has been passed in many countries to mandate guidelines for corporate governance and accounting. A notable example in the United States is the passage of the Sarbanes Oxley Act.
The world has become an instant global village where everybody knows everything—and nothing. According to Morgan Stanley (January 2005), there are now more than 850 million people participating twenty-four hours a day, seven days a week in the Internet economy. Also, the number of mobile phones in use has increased to more than 1.6 billion users worldwide. Of these mobile phones, more than 20% are said to be real-time instant Internet devices. Microsoft and its competitors report that they have more than 350 million instant message users signed up to their Instant Message platforms. Due to the rate of information transfer, companies are pressed to provide a more detailed level of transparency and “good behavior.” Value takes years to generate in the corporate world but can be destroyed within hours.
Many companies make use of their corporate websites to provide information to investors, analysts and the press. Based on the information provided, the performance of a company can be “benchmarked” relative to their peers. However, benchmarking in this manner is subjective, subject to human bias and is therefore cannot be applied across many companies in a precise manner. Neither are tools available for ready, objective benchmarking using prescribed or user-established criteria. Over the past eight years or so, the Swedish company Hallvarsson & Hallvarsson has measured the public performance of the Internet appearance for Europe's top 150 listed companies and the clear indication from their data is that above-average share performance is directly linked to good corporate behavior and true information sharing.
It would be an improvement in the field to provide board members and executive management teams with an integrated view of companies of interest. Both from a legal perspective and from a public point of view, companies are under pressure to provide trust, transparency and right decision making. The classic reliance on short term and mostly static economic (financial) data is insufficient.
What is needed is more than a company centric view. Within the asset management industry it is acknowledged that about 30% of a company's value is based on financial data and 70% is based on soft data. The present invention addresses these and other needs.